Cyprus will tap the bond markets for a 10-year bond on Tuesday 27 October, according to an announcement by the Ministry of Finance.
No information was given about the amount that will be issued, but local media reported that the government was planning to issue a bond of up to €1 billion.
Cyprus issued a €1bn bond in April with a maturity of seven years and a yield of 4%. If the government goes for a €1.5 billion issue now, it would be the largest in history and the first ten-year bond since 2010.
At the same time, the ministry has invited holders of existing Eurobonds to exchange with the new issue.
The bonds that may be used in exchange are the following:
*The bond due in 2019 with a coupon rate of 4.75%. ISIN XS1081101807
*The bond due in 2020 with a coupon rate of 4.625%. ISIN XS0483954144
*The bond due in 2020 with a coupon rate of 6.500%. ISIN XS1064662890
Cyprus government bonds became eligible for QE—the European Central Bank (ECB) expanded asset-purchasing programme–on October 7.